CTA Sues Federal Transit Administration Over $9.5M

0:00On March 24, the Chicago Transit Authority sued the Transportation Department and its Federal Transit Administration on March 20, over nine, $0.5 million in withheld reimbursements from grants approved under former President Joe Biden. The agency claims its political retaliation and got a temporary restraining order from U.S. District Judge Thomas Durkin to release the funds right away. With the judge put that order on hold until Friday, giving the federal government time to appeal. The money was meant to modernize century-old tracks and extend a rail line by 5.5 miles. And without it, Chicago warned projects could. Stop as soon as Friday. CTA leaders hailed the ruling as a huge win toward getting the funding back for these key upgrades. Meanwhile, the Transportation Department says its pushing back against what it calls discriminatory and wasteful practices in contracts. This fits into a larger class between the Trump Administration and Democrat-led cities, with billions in transit funds froze in nationwide.

1:03New York's Metropolitan Transportation Authority filed a similar suit last week after losing nearly $60 million from a $7.7 billion subway project. Earlier this month, a federal appeals court stepped in for New York's $16 billion Hudson Tunnel, ordering payments to continue despite a $200 million hold-up as these battles heat up across major cities.